The Dos and Don’ts of Home Equity Loans:
DO use home equity for improvements or additions that maintain or add value to your home. Ideally, equities are assets and should be used for other assets.
DON’T take out excessive equity. If you have taken out too much, and the real estate market drops, you can end up losing all equity in your home.
DO consider home equity for use in retirement. Retired homeowners who pay off their mortgage can sell their home and cash out the equity by downsizing.
DON’T consider home equity if you plan to sell in the near future. All debts on your house must be paid off in order to sell your home. Don’t tap equity if you aren’t able to pay off the loan prior to the sell date.
DO consider home equity to cover unexpected events. If you don’t have emergency savings, your home equity can provide financial relief for unexpected events.
A Northwest home equity loan gives you the freedom to do things you’ve always wanted to do: Home improvement, buying a new car, taking a vacation and paying education or medical expenses. Visit (personal borrow home loans) or call 1-877-672-5678 to hear about fixed rate loan and ChoiceLine home equity line of credit (HELOC) options.